Chinese garlic export price increased 45% from last year
âChilled garlic entered the market in September. The overall price remained stable for most of the month, but started to increase around the Mid-Autumn Festival. [21 September, 2021]. The proportion of garlic kept cold in the garlic market continues to grow every day. There is more than enough garlic in storage. The overall export price of Chinese garlic rose 45%, mainly due to higher shipping costs.
Many buyers are delaying the purchase of garlic due to increased shipping costs. They hope the price will drop, and then they will start buying their garlic. This phenomenon is so prevalent that some garlic processing factories have had to return their processed garlic products to cold storage until orders can be shipped. This puts a lot of pressure on the storage facilities. When products remain in stock for a long time, there is an increasing risk that buyers will cancel their orders. This will undoubtedly affect the export volume of Chinese garlic.
The exorbitant prices of shipping are getting worse every day and some countries have started to think about supervising the industry. Many major shipping companies have chosen to freeze their prices in mid-September. But âfrozen pricesâ only apply to the base price, not to surcharges, and the additional costs have gradually become the heaviest burden on traders.
For most traders, the temporary freeze on shipping charges will have no short-term impact on the market. In addition, the situation has become so uncertain that most exporters are unable to provide accurate prices, which of course increases the risks of export trade.
According to Ms. Annie Chen: âThe increase in the price of shipping costs is much greater than the increase in the prices of export garlic. Compared to last year, export prices increased by 45%. Even though the shipping companies announced a price freeze, the situation stabilized, but only got worse. In addition, cabin space is difficult to secure as there is a shortage of sea containers. This issue will not be resolved until the end of this year. Additionally, bad weather conditions can affect the last stage of the garlic planting season, which will drive up the price. In other words, customers had better order as soon as possible.
For more information:
Ms. Annie Chen – Sales Director
Jining Fenduni Foodstuff Co., Ltd.
WhatsApp: + 86 18678710377
WeChat: + 86 18678710377
Viber: + 86 18678710377
Email: [email protected]